Presentation Schmidt - Bilfinger

Presentation Schmidt - Bilfinger

Bilfinger SECapital Markets Day 2012Bilfinger Industrial TechnologiesGerhard Schmidt | CEO Bilfinger Industrial Technologies GmbHRotterdam/ Amsterdam | November 23, 2012

AgendaPage 2PageA. Company structure and portfolio 3B. Markets and clients 11C. Key success factors and strategy 22

A. Company structure and portfolioPage 3

Short profile: Bilfinger Industrial Technologies generates~€ 1 bn output volume with 8,000 own employeesPage 4Bilfinger Industrial TechnologiesBilfinger IndustrialBilfinger IndustrialServices GmbH"Full servicemaintenance"Ensuring andoptimizing plantavailabilityBilfinger IndustrialTechnologies GmbH"From engineering toInstallation"Execution of broadengineering, projectmanagement services,fabrication andconstruction worksBilfinger Industrial Technologies: Output: ~ €0.9 bn Growth: >5% CAGR, organic ~ 8,000 employees (>3,000 engineers) 12 operational companies 25 countries Continuously successful safety record:LTIF 1) : 2.0 (Q1-Q3, 2012)1) Lost Time Incident Frequency Rate

Our business is structured in two Divisions: Engineeringand TechnologyPage 5Bilfinger Industrial TechnologiesBilfinger Industrial Technologies GmbHG. SchmidtCEOD. RehmCFOP. KoolenCOODr. KreysingCOODivisionsDivision management with responsibility for operational businessCorporate DepartmentsEnsuring corporate governanceDivision EngineeringDivision Technology

EngineeringTechnologyWe offer a broad range of services related to engineeringand technologyPage 6Bilfinger Industrial TechnologiesCONSULTANCYENGINEERINGPROJECTMANAGEMENTAUTOMATION& CONTROLCONSTRUCTION& FABRICATIONENGINEEREDPRODUCTS

EngineeringOur engineering portfolio includes consultancy andproject management servicesPage 7Bilfinger Industrial TechnologiesCONSULTANCYENGINEERINGPROJECTMANAGEMENT• Feasibility studies• Cost estimates• Master planning• Routing studies• Safety studies• Authority engineering• Life cycle analysis• Conceptual design• Process modeling• Basic and detaildesign• Multidisciplinaryprojects• Planning & scheduling• Cost estimating & control• Procurement• Construction mgmt.• Technical supervision• Commissioning mgmt.

TechnologyOur technology portfolio comprises automation & control,engineered products and construction & fabricationPage 8Bilfinger Industrial TechnologiesAUTOMATION& CONTROLCONSTRUCTION& FABRICATIONENGINEEREDPRODUCTS• Design & manufacturing• Automation software• EI&C installation• Operation simulation• Storage optimization• Training & maintenance• Multidisciplinaryprojects• Piping and mechanical• Fabrication• Pipelines• ISP services• Equipment installation• Gas processing units• Bio-methane upgrade• Automation systems• Gas odorizing• Bio reactors• Pharmaceutical skids• Turbine inlet units• Noise control systems

Contracts in our Division Engineering are usuallybelow €1mContract Volumes(Share of contracts in total output volume)Page 9Bilfinger Industrial TechnologiesDivisionEngineering> €1.5m~25%Contract types• Reimbursable contracts• Lump-sum contracts~50%

Most contracts within our Division Technology havevalues below €5mContract Volumes(Share of contracts in total output volume)Page 10Bilfinger Industrial TechnologiesDivisionTechnology> €5m~20%~40% €5m in thelast 3 years• Average size of contracts >€5m : €8m• Modification• Debottlenecking• Upgrading, etc.• Greenfieldplants

B. Markets and clientsPage 11

We cover a broad range of process industries with a wellbalanced portfolioPage 12Bilfinger Industrial TechnologiesClient industries of Bilfinger Industrial TechnologiesShare of output volume per industry• Chemicals/petrochemicals• Oil and Gas• Refinery• Energy• Pharma• Metallurgy• Others (e.g. consumer goods, pulp & paper)Others~14%Metallurgy~6%Pharma ~7%~28%Chemicals/petrochemicalsEnergy~18%~27%Oil & gas/refinery

Markets & Clients: We are present in 25 differentcountries in Europe, Asia and Middle EastPage 13Bilfinger Industrial TechnologiesRegional presenceEurope:Austria Belgium Czech Rep. Germany HungaryNetherlandsPolandRomaniaRussiaSerbia Slovak Rep. UkraineAsia:China India Indonesia Malaysia Thailand VietnamMiddle East:Abu DhabiSaudi ArabiaBahrain Oman QatarUnited Arab EmiratesAfrica:Libya

Well known clients from different industries and regionsvalue our servicesPage 14Bilfinger Industrial Technologies

Conclusion: Strong diversification is our core assetPage 15Bilfinger Industrial TechnologiesDiversification in clients• Large basis of long-term clients of different sizes→ 30% of revenues are generated with Top 10 clientsTop 10 ClientsBilfinger Industrial TechnologiesDiversification in client industries• Strong diversity by industries - clients with different business cycles→ Top 10 clients are in 6 different industriesDiversification in geography• Presence in developed and developing countries→ Local companies in 25 countries

Project referencesCONSULTINGRas Al Khaimah GasCommission│Tanzania(volume

Project referencesENGINEERINGDSM │ Worldwide(volume ~€ 5 mio. p.a.)Page 17Bilfinger Industrial TechnologiesEngineering services frameworkagreement, global

Project referencesPROJECT MANAGEMENTNAM (Shell Group) │The Netherlands(volume ~€ 20 mio. p.a.)Page 18Bilfinger Industrial TechnologiesBasic design and EPCM services forvarious depletion compression projects

Project referencesENGINEERED PRODUCTSGas processing units │E.ON Gas Storage│UK(volume ~€ 7 mio.)Page 19Bilfinger Industrial TechnologiesProject HolfordDelivery of two gas dehydration units forthe Holford Underground Storage

Project referencesCONSTRUCTION &FABRICATIONClient in the ChemicalIndustry │ U.S.A. & Germany(volume ~€ 35 mio.)Page 21Bilfinger Industrial TechnologiesDetail engineering, fabrication anderection of columns for chemical industry2 columnsTotal height: 58 m each(Prefabricated in 2 parts)17 columnsTotal height: 72 m each(Prefabricated in 2 parts)

C. Key success factors and strategyPage 22

Organic growth, external growth and profitability are ourmajor strategic goalsPage 23Bilfinger Industrial TechnologiesOrganic growth• Further strengthening of client relationships and key account management• Benefit from Cross-selling within Industrial Technologies and Bilfinger Group• Further expansion of activities in the gas marketOutput volume BIT[EUR bn]External growth• Selected acquisitions of automation/EI&C and engineering targets• Further internationalization of construction activities (high level of profitability,growth markets, portfolio supplementation)~0.9Profitability and professionalization• Continuous efficiency and performance improvement• Focus on HR development throughout the Subgroup2013 2016

Common market development within Bilfinger Industrial is a key pillar ofour organic growth strategyPage 24Bilfinger Industrial TechnologiesLevels of common market developmentDimensions of common market developmentBilfinger IndustrialServices GmbHBilfinger SEBilfinger Industrial23Bilfinger IndustrialTechnologies GmbHDivision EngineeringDivision Technology1Common industry developmentCommon client development• Level 1: Within Bilfinger Industrial Technologies(between Engineering & Technology)• Level 2: Within Bilfinger Industrial segment(with Bilfinger Industrial Services)• Level 3: Within Bilfinger SE(with other Bilfinger subgroups)• Targeted and common client relationshipmanagement• Further development of joint portfolio for strategicindustries (e.g. oil & gas, pharma)

Key clients within the segment are regularly assessed and commonlyapproachedPage 25Bilfinger Industrial TechnologiesPotential clientsfor the BilfingerIndustrialSegment(excl. Tebodin)29 Focus-Clientsof Tebodin22 commonTop-Clientse.g.:147 Focus-Clientsof Bilfinger IndustrialSegment(excl. Tebodin)Potential clientsfor the divisionEngineering(Tebodin)

Our key success factors are competent solutions, qualifiedstaff, entrepreneurial managers and our client networkPage 26Bilfinger Industrial TechnologiesComprehensive Competence in solutions▪ Competencies in planning and project execution▪ Competencies in all construction activities▪ Best practices by the use of international networksHigh share of own employees, well trained▪ Technical know-how and client specific experience▪ Fulfilling high requirements in safety▪ Training of technical specialists/skillsEntrepreneurial managers▪ Decentralized structure, empowerment of local staff▪ Flat organizational structure, fast decisions▪ Development of high potentials to managers and key personnelBilfinger Industrial client network▪ Common client relationship management▪ Structured info pipeline about markets and businessLong-term,profitable,trust-basedpartnershipswith clients

Thank you for your attentionGerhard Schmidt, | CEO Bilfinger Industrial Technologies GmbHRotterdam/ Amsterdam | November 23, 2012

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